Page:United States Statutes at Large Volume 82.djvu/1064

 1022

PUBLIC LAW 90-575-OCT. 16, 1968

79 Stat. 1237. 20 USC 1072.

Ante,

p. 1021.

[82 STAT.

ceding the making of the advance) of the reserve fund less the greater of (A) the sum of (i) advances made under this section prior to July 1, 1968, (ii) an amount equal to twice the amount of advances made under this section after June 80, 1968, and before the advance for purposes of which the determination is made, and (iii) the proceeds of earnings on advances made under this section, or (B) any amount which is required to be maintained in such fund pursuant to State law or regulation, or by agreement with lenders, as a, reserve against the insurance of outstanding loans." (c) Section 422(b) of such Act is amended by inserting " (1) " after " (b)", by inserting "prior to July 1, 1968" before "pursuant to subsection (a) " where it appears in the first and third sentences, by deleting the last sentence of such subsection, and by adding at the end of such subsection the following new paragraphs: "(2) The total of the advances from the sums appropriated pursuant to clause (4) of section 421(b)(A) to nonprofit private institutions and organizations for the benefit of students in any State and (B) to such State may not exceed an amount which bears the same ratio to such sums as the population of such State aged eighteen to twenty-two, inclusive, bears to the population of all the States aged eighteen to twenty-two, inclusive, but such advances may otherwise be in such amounts as the Commissioner determines will best achieve the purposes for which they are made. The amount available, however, for advances to any State shall not be less than $25,000, and any addtional funds needed to meet this requirement shall be derived by proportionately reducing (but not below $25,000) the amount available for advances to each of the remaining States. " (3) For the purposes of this subsection, the population aged eighteen to twenty-two, inclusive, of each State and of all the States shall be determined by the Commissioner on the basis of the most recent satisfactory data available to him." AMENDMENTS RELATING TO ADMINISTRATIVE COST ALLOWANCE A N D I N T E R E S T RATE PROVISIONS

Antej

p. 635-

Intra.

Ante,

p. 636.

20 USC 1077.

SEC. 115. (a)(1) Section 4 2 8 (a)(2)(B) of the Higher Education Act of 1965 is amended to read as follows: " (B) If (i) a State student loan insurance program is covered by an agreement under subsection (b), (ii) a statute of such State limits the interest rate on loans insured by such program to a rate which is less than 7 per centum per annum on the unpaid principal balance, and (iii) the Commissioner determines that section 428(d) does not make such statutory limitation inapplicable and that such statutory limitation threatens to impede the carrying out of the purposes of this part, then he may pay an administrative cost allowance to the holder of each loan which is insured under such program and which is made during the period beginning on the sixtieth day after the date of enactment of the Higher Education Amendments of 1968 and ending 120 days after the adjournment of such State's first regular legislative session which adjourns after January 1, 1969. Such administrative cost allowance shall be paid over the term of the loan in an amount per annum (determined by the Commissioner) which shall not exceed 1 per centum of the unpaid principal balance of the loan." (2) Section 428(a)(2)(A) of such Act is amended by striking out the second sentence and by inserting in the last sentence after "portion of the interest" the following: "and administrative cost allowance". (3) Section 428 of such Act is amended by adding at the end thereof the following new subsection: " (d) No provision of any law of the United States (other than sections 427(a)(2)(D) and 427(b) of this Act) or of any State (other

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